A handful of ENRC shareholders led by Alexander Machkevitch, one of the co-founders of the mining firm, is in discussion on the possible buyout of the company. The US$6 billion company has been badly battered with governance issues as well as two internal probes, leading to much of the current disarray in the company.
The bid is clearly an opportunistic move in light of the current internal issues and rapid decline of the ENRC share values. When the rumors came about, share prices appreciate by as much as 31% last Friday.
In a rare occasion, the reclusive Kazakh-Israeli billionaire said he was reviewing opportunities including the options for his 14.6 shareholdings in ENRC. He also confirmed that he is forming a bid consortium with fellow co-founders Alijan Ibragimov and Patokh Chodlev together with the Kazakh government.
The plan was to privatize the company after its listing in the London Stock Exchange and is still in its very early stages. Put together the ENRC co-founders and the Kazakh government owns over 55% of ENRC.
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